HEC - Five Forces Analysis

HEC - Five Forces Analysis

Last Updated by wbot | Update This Page Now

Intensity of Existing Rivalry

Relatively few competitors (HEC) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

Low concentration of suppliers (HEC) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Inputs have little impact on costs (HEC) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....

Threat of Substitutes

Substitute has lower performance (HEC) A lower performance product means a customer is less likely to switch from HEC to another product or...
Substitute is lower quality (HEC) A lower quality product means a customer is less likely to switch from HEC to another product or...
Substantial product differentiation (HEC) When products and services are very different, customers are less likely to find comparable product...
Substitute product is inferior (HEC) An inferior product means a customer is less likely to switch from HEC to another product or...

Bargaining Power of Customers

Low dependency on distributors (HEC) When produces have low dependence, distributors have less bargaining power. Low dependency...
Low buyer price sensitivity (HEC) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Large number of customers (HEC) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (HEC) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (HEC) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (HEC) If strong brands are critical to compete, then new competitors will have to improve their brand...
Geographic factors limit competition (HEC) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (HEC) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (HEC) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (HEC) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to hec's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up hec's most important five forces statements.